Question

This assignment is designed to illustrate how a software package such as Microsoft Excel supplemented by an add-in such as PHStat can enable one to make decisions about the behavior of a single population parameter. You must provide printouts of all results of the hypothesis tests that you accomplish as you fulfill the requirements of this assignment. You should not only find the required information to make the appropriate decisions, but you also should provide explanations, in the context of the problems, of the meanings of your decisions. Once again, the assignment should be submitted to the course drop box in an organized fashion with at least the first page of this assignment sheet that includes the names of the team members as a cover sheet. This will make it easier to evaluate. Business implications are required for one part of each problem. Reference the relevant portions of chapter 9 both within and at the end of the chapter and the appendices in the back of your text should you need help in using PHStat to complete this work.   

1. You no longer believe that the population standard deviation in the tuition amounts for this population is a known quantity. You therefore will use the standard deviation in the tuition amounts of a representative sample of universities as an estimate of the unknown population standard deviation. You collect yearly tuition data from a random sample of universities once again. This data is shown in appendix one below. Once again, at each of the 5% and 10% levels of significance, is the mean yearly tuition less than $20,000? Again, in your memo, comment upon the effect of the change in the level of significance on your decision, if necessary. Also, compare, at each level of significance, the results of this portion of the problem to those of the previous part. Account for any difference in your decisions at each level of significance between the two parts of the problem. Make this accounting based not only on a mathematical approach, but rather on a conceptual justification.

   Appendix One: (Tuition Amounts)

              $22,000        $25,412        $18,543           $21,010        $32,500

              $13,476        $18,765        $17,689           $12,378        $21,800

              $19,548        $22,348        $17,659           $18,654        $23,409

              $31,329        $14,489        $15,698           $11,389        $19,901

              $25,671        $18,888        $14,490           $24,468        $15,690

              $13,298        $30,000        $12,390           $21,672        $20,037

              $21,876        $19,090        $21,684           $24,347        $18,000

              $12,769        $17,032        $26,876           $18,923        $15,119

              $15,632        $20,000        $21,769           $15,858        $13,607

              $24,879        $17,540        $14,027           $13,908        $12,690

Answer 1